One of the best strategies is this

[Melanie Baldridge]

If you think about your career and your journey to build wealth over a long time horizon, this is still the strategy that I like most:

1. Start a business that produces cashflow.

2. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits.

3. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio.

4. Occasionally sell and 1031 into more attractive assets.

5. WAIT as long as you can and don't die.

This is easier said than done but it's a proven model to create wealth in your life that has worked for many people over time.

[Nathan Gesner]

Quote from @Melanie Baldridge:

It's really simple: increase earnings, reduce expenses, save, invest, and wait. Unfortunately, the younger generations are being told they can have everything they want right now by borrowing money from someone else while quitting their job, driving expensive cars, and drinking $8 coffees and DoorDashing dinner every night. They want everything right now. 

[Stuart Udis]

@Melanie Baldridge & @Nathan Gesner Your sensible advice will fall on deaf ears as its already been drowned out by those who share  the ease in which  success is earned through real estate. That's why I created a step-by-step approach for the investors you genuinely are trying to help, but cannot be deterred from continuing down the misguided path their mentors, coaches and gurus have sent them: 

1. Register for courses and mentorship covering the BRRRR method and Subject To financing to become a multi-millionaire & reach financial freedom at an accelerated rate.

2. Form an asset protection plan that's so complexed it must be described in flow chart form and must include a Wyoming LLC, otherwise what's the point if they aren't "anonymous"?

3. Hone Microsoft Excel skills by creating 12 tab pro-formas to practice 1% rule underwriting on $100K single family homes. 

4. Become a syndication Co-GP by lending the escrow funds for the true GP where you receive 1% of the GP share of project upside, then create website and social media marketing materials where you hold yourself out as THE GP for the syndication.

5. Marry someone wealthy

[Nathan Gesner]

Quote from @Stuart Udis:

#5 isn't realistic for most of us, particularly men.

[Jay Hinrichs]

Quote from @Nathan Gesner:

Quote from @Melanie Baldridge:

It's really simple: increase earnings, reduce expenses, save, invest, and wait. Unfortunately, the younger generations are being told they can have everything they want right now by borrowing money from someone else while quitting their job, driving expensive cars, and drinking $8 coffees and DoorDashing dinner every night. They want everything right now. 

this door dash stuff is crazy my daughter was staying here and i wake up to find a door dash of a Starbucks coffee.. Really ?

[Chris Seveney]

Quote from @Jay Hinrichs:

Quote from @Nathan Gesner:

Quote from @Melanie Baldridge:

It's really simple: increase earnings, reduce expenses, save, invest, and wait. Unfortunately, the younger generations are being told they can have everything they want right now by borrowing money from someone else while quitting their job, driving expensive cars, and drinking $8 coffees and DoorDashing dinner every night. They want everything right now. 

this door dash stuff is crazy my daughter was staying here and i wake up to find a door dash of a Starbucks coffee.. Really ?

 I know I am old when I have never ordered door dash, uber eats and did venmo for the first time a few months ago. Whats funny is 20 years ago my net worth was negative and I would eat out all the time, now I have a few bucks in my pocket and I cannot remember the last time we went out to eat that was not a special occassion. :) . 

[Jay Hinrichs]

Quote from @Chris Seveney:

Quote from @Jay Hinrichs:

Quote from @Nathan Gesner:

Quote from @Melanie Baldridge:

It's really simple: increase earnings, reduce expenses, save, invest, and wait. Unfortunately, the younger generations are being told they can have everything they want right now by borrowing money from someone else while quitting their job, driving expensive cars, and drinking $8 coffees and DoorDashing dinner every night. They want everything right now. 

this door dash stuff is crazy my daughter was staying here and i wake up to find a door dash of a Starbucks coffee.. Really ?

 I know I am old when I have never ordered door dash, uber eats and did venmo for the first time a few months ago. Whats funny is 20 years ago my net worth was negative and I would eat out all the time, now I have a few bucks in my pocket and I cannot remember the last time we went out to eat that was not a special occassion. :) . 

me to never have done door dash.. I mean I even drive to get the pizza LOL.. we sure saved a lot of money during the pandemic.. I travel a lot to all my clients back east so I do get out to fine dining on those trips..

[Nathan Gesner]

Quote from @Jay Hinrichs:

We live two blocks from McDonalds, my son worked at McDonalds, he had a car, the weather was nice, but he would still order from DoorDash. Ridiculous!

I've never ordered from them. The only food I have delivered is pizza, and even that is rare. If I'm paying those prices, I want someone to bring me a drink and clean my dishes. LOL!

[Christopher Robert Noland]

Quote from @Melanie Baldridge:

If you think about your career and your journey to build wealth over a long time horizon, this is still the strategy that I like most:

1. Start a business that produces cashflow.

2. Use your personal cashflow to buy or invest in real estate that produces more cashflow and has other great tax benefits.

3. Reinvest whatever money you save on taxes via depreciation back into more real estate or property improvements to continue increasing the size and quality of your portfolio.

4. Occasionally sell and 1031 into more attractive assets.

5. WAIT as long as you can and don't die.

This is easier said than done but it's a proven model to create wealth in your life that has worked for many people over time.

I just borrow the down payment as a loan or equity in the property. Easier. 

[Nicholas L.]

@Melanie Baldridge

agree although I think that expectations around 2 need to be reset.

'real estate that produces more cashflow' is difficult for the beginning investor.  cashflow in residential is typically achieved either through a more difficult method, or after 10+ years.

[Don Konipol]

I’m just glad to see I’m not the only one who can’t believe the laziness of their children ordering home delivery rather than driving for five minutes.  

[Nicholas L.]

@Don Konipol

I view these trends as both things that people are participating in AND things that are being done to them.

Silicon Valley hires the best and brightest to make phones, social media, games and apps addictive.  Parents buy their 11 year olds smartphones.  The 11 year olds get addicted.  Then at 20whatever they want to do everything on an app and order Ubereats and not put that money into VTI or RE.

Kind of a mess.

[Don Konipol]

Quote from @Stuart Udis:

@Melanie Baldridge & @Nathan Gesner Your sensible advice will fall on deaf ears as its already been drowned out by those who share  the ease in which  success is earned through real estate. That's why I created a step-by-step approach for the investors you genuinely are trying to help, but cannot be deterred from continuing down the misguided path their mentors, coaches and gurus have sent them: 

1. Register for courses and mentorship covering the BRRRR method and Subject To financing to become a multi-millionaire & reach financial freedom at an accelerated rate.

2. Form an asset protection plan that's so complexed it must be described in flow chart form and must include a Wyoming LLC, otherwise what's the point if they aren't "anonymous"?

3. Hone Microsoft Excel skills by creating 12 tab pro-formas to practice 1% rule underwriting on $100K single family homes. 

4. Become a syndication Co-GP by lending the escrow funds for the true GP where you receive 1% of the GP share of project upside, then create website and social media marketing materials where you hold yourself out as THE GP for the syndication.

5. Marry someone wealthy

Stuart, it’s interesting that the “guru” programs fall into two classifications.  One is the programs relying on doing deals that just don’t work, are quasi illegal, unethical or can’t be accomplished enough times to make the endeavor worthwhile.  The second categories are techniques and strategies than CAN and DO work, but the students of the mentor just don’t have the experience, education, knowledge or skill set to make it work for them.  And I’ve yet to see a mentorship program that can overcome the deficiencies of experience and knowledge and ability inherent in most of their students. 
If a student wants to attend a LEGITIMATE university but their background indicates they won’t be successful an ethical college will reject their application.  But the guru/mentors are happy to accept everyone’s money - so they must sell the proposition that ANYONE who buys in to their program will be successful if they just “apply themselves”.  If that were true the various real estate niches would have almost unlimited competition and profits would head toward 0.  But we know that 99% + of people paying for mentorships are no longer even trying to employ those strategies or techniques within - 12 months.  

It occurred to me a long time ago as to why no logical argument about REAL ESTATE will win an argument with someone wanting to believe that the purchase of a guru’s program will ensure their success.  It’s because the guru’s are NOT selling a real estate program, strategy or technique - they’re selling the American Dream of wealth and financial independence.  

[Jay Hinrichs]

Quote from @Don Konipol:

Quote from @Stuart Udis:

@Melanie Baldridge & @Nathan Gesner Your sensible advice will fall on deaf ears as its already been drowned out by those who share  the ease in which  success is earned through real estate. That's why I created a step-by-step approach for the investors you genuinely are trying to help, but cannot be deterred from continuing down the misguided path their mentors, coaches and gurus have sent them: 

1. Register for courses and mentorship covering the BRRRR method and Subject To financing to become a multi-millionaire & reach financial freedom at an accelerated rate.

2. Form an asset protection plan that's so complexed it must be described in flow chart form and must include a Wyoming LLC, otherwise what's the point if they aren't "anonymous"?

3. Hone Microsoft Excel skills by creating 12 tab pro-formas to practice 1% rule underwriting on $100K single family homes. 

4. Become a syndication Co-GP by lending the escrow funds for the true GP where you receive 1% of the GP share of project upside, then create website and social media marketing materials where you hold yourself out as THE GP for the syndication.

5. Marry someone wealthy

Stuart, it’s interesting that the “guru” programs fall into two classifications.  One is the programs relying on doing deals that just don’t work, are quasi illegal, unethical or can’t be accomplished enough times to make the endeavor worthwhile.  The second categories are techniques and strategies than CAN and DO work, but the students of the mentor just don’t have the experience, education, knowledge or skill set to make it work for them.  And I’ve yet to see a mentorship program that can overcome the deficiencies of experience and knowledge and ability inherent in most of their students. 
If a student wants to attend a LEGITIMATE university but their background indicates they won’t be successful an ethical college will reject their application.  But the guru/mentors are happy to accept everyone’s money - so they must sell the proposition that ANYONE who buys in to their program will be successful if they just “apply themselves”.  If that were true the various real estate niches would have almost unlimited competition and profits would head toward 0.  But we know that 99% + of people paying for mentorships are no longer even trying to employ those strategies or techniques within - 12 months.  

It occurred to me a long time ago as to why no logical argument about REAL ESTATE will win an argument with someone wanting to believe that the purchase of a guru’s program will ensure their success.  It’s because the guru’s are NOT selling a real estate program, strategy or technique - they’re selling the American Dream of wealth and financial independence.  

they get their roots in MLM  just like Amway selling the dream. 

[JD Martin]

Quote from @Jay Hinrichs:

Quote from @Don Konipol:

Quote from @Stuart Udis:

@Melanie Baldridge & @Nathan Gesner Your sensible advice will fall on deaf ears as its already been drowned out by those who share  the ease in which  success is earned through real estate. That's why I created a step-by-step approach for the investors you genuinely are trying to help, but cannot be deterred from continuing down the misguided path their mentors, coaches and gurus have sent them: 

1. Register for courses and mentorship covering the BRRRR method and Subject To financing to become a multi-millionaire & reach financial freedom at an accelerated rate.

2. Form an asset protection plan that's so complexed it must be described in flow chart form and must include a Wyoming LLC, otherwise what's the point if they aren't "anonymous"?

3. Hone Microsoft Excel skills by creating 12 tab pro-formas to practice 1% rule underwriting on $100K single family homes. 

4. Become a syndication Co-GP by lending the escrow funds for the true GP where you receive 1% of the GP share of project upside, then create website and social media marketing materials where you hold yourself out as THE GP for the syndication.

5. Marry someone wealthy

Stuart, it’s interesting that the “guru” programs fall into two classifications.  One is the programs relying on doing deals that just don’t work, are quasi illegal, unethical or can’t be accomplished enough times to make the endeavor worthwhile.  The second categories are techniques and strategies than CAN and DO work, but the students of the mentor just don’t have the experience, education, knowledge or skill set to make it work for them.  And I’ve yet to see a mentorship program that can overcome the deficiencies of experience and knowledge and ability inherent in most of their students. 
If a student wants to attend a LEGITIMATE university but their background indicates they won’t be successful an ethical college will reject their application.  But the guru/mentors are happy to accept everyone’s money - so they must sell the proposition that ANYONE who buys in to their program will be successful if they just “apply themselves”.  If that were true the various real estate niches would have almost unlimited competition and profits would head toward 0.  But we know that 99% + of people paying for mentorships are no longer even trying to employ those strategies or techniques within - 12 months.  

It occurred to me a long time ago as to why no logical argument about REAL ESTATE will win an argument with someone wanting to believe that the purchase of a guru’s program will ensure their success.  It’s because the guru’s are NOT selling a real estate program, strategy or technique - they’re selling the American Dream of wealth and financial independence.  

they get their roots in MLM  just like Amway selling the dream. 

 The "Don't die" strategy made me laugh 😂.

Last time we were in FL my granddaughter ordered a lemonade door dash or whatever the hell you call it. $14 by the time the guy left; I just about fell over dead. She could have used the car to get it herself or better yet we offered to make a fresh batch right there at the house but she wanted the Starbucks one. She better make a lot of money or marry someone rich because she has some unrealistic expectations. 

Personally, I'm glad for the people who have no net worth and spend all their money on BS. Not only do they become our renters but they help keep the economy just chugging along. 

[Evan Polaski]

Sorry to bring this back to the opening post... it is great fun to read about all the ways the young people do things that "we" didn't.

I mainly disagree with number 1.  Start a business that produces cash flow. 

Well, that is easier said than done, and most small businesses don't create enough cashflow to survive more than 5 yrs.  Many that do create an income and survive only do so with the owner being the sole employee.  

And while it is not the sexiest, maintaining your W2 job and working hard to get promoted and earning more, even if that means changing jobs every few years, is often times a faster approach to create investable income.  

Other than that, I am all on board.  Spend less than your earn, reinvest any dividends/cashflow, and continue to grow on that.  

Now, back to digging on DoorDash/Uber Eats.

[Andy Nathan]

That’s a solid wealth-building strategy with a proven track record! Starting a business to generate consistent cash flow gives you the flexibility to reinvest into real estate, which offers both income and long-term appreciation. Leveraging tax benefits like depreciation to scale your portfolio, combined with smart 1031 exchanges, helps you compound your investments. Patience and long-term thinking are key. It’s definitely a powerful roadmap to creating sustainable wealth over time!

[Marcus Auerbach]

I agree with this 100%. Especially with #1 - start a business for cash flow. You can still keep your W2 and run the biz on the side.

Real estate is mostly good in creating net worth. Cash flow is not its main power. A business is the opposite: it's purpose is mainly to create cash flow and maybe you can create a sellable asset (its not easy to sell a business).

If you think W2 + building a business is too much work and not for everyone, you are right! If you want to be in the top 1%, you also have to outperform the other 99%. And its not like they don't try...

[Nathan Gesner]

Quote from @Evan Polaski:

I mainly disagree with number 1.  Start a business that produces cash flow. 

Agreed. I somehow missed that in my original reading, but it immediately struck me when I returned. 

W-2 jobs are usually the best option. Let someone else handle the risk of owning a business. Focus on earning a paycheck, maybe running some side hustles, and increasing earnings to the max so you have funds to invest.